SEMI Statement on the Recent China Solar Trade Case Ruling

Now
is the Time for a Renewable Energy Free Trade Agreement

SAN JOSE, Calif. — May
18, 2012 — The
preliminary determination of the U.S. Commerce Department to impose tariffs of
between 31 and 250 percent on solar imports from China marks an inflection
point for the global solar industry.
While SEMI supports the rule of law, there can be no doubt that these
tariffs may have a serious effect on the adoption of solar PV in the U.S. With a
majority of U.S. solar panels coming from China, implementing these tariffs
will result in higher prices on U.S. solar products, disruption of utility and
other large-scale solar projects, increased risk for continued trade friction
and retaliatory trade action, and most importantly, reduced adoption of solar
power.

SEMI
had taken a neutral position in the China trade dispute, encouraging all
parties to work together on measures that would eliminate all trade and
investment barriers to solar energy.

Now
is the time to take an active position urging for the establishment of a global
free trade agreement for renewable energy products. This will not be an easy achievement nor will
it be accomplished anytime soon. However,
a free trade agreement on PV and renewable energy products must be our ultimate
goal in order to sustain a healthy global industry focused on replacing fossil
fuels with clean, renewable energy sources.

The
key model for such an agreement can be found in the World Trade Organization’s Information
Technology Agreement (ITA), currently celebrating its 15th
anniversary. In 1996, the ITA was
adopted by 29 participating countries establishing the goal to eliminate all
tariffs on information technology products and manufacturing equipment. The
number of participants has grown to 70, representing 97 percent of world trade
in information technology products. At
the time of its adoption, semiconductors and information technology had
undergone years of similar trade friction as policymakers around the world
attempted to encourage the development of new IT industries and promote
domestic manufacturing. The ITA was the
culmination of the widespread recognition that free and open trade ultimately
benefits companies and consumers in all countries.

The
current trade dispute is just one instance of growing trade barriers that are
proliferating and encumbering the deployment of renewable energy. Other trade and market barriers have arisen
in areas related to investment, government procurement, local content
requirements, and conflicting standards and certification requirements. PV solar and other renewable energy
industries must begin the long and difficult process of developing a
comprehensive and holistic world trade agreement that promotes free and open
trade and accelerates adoption of renewable energy.

If
you would like to join us in these efforts or have comments, please contact us.